Number of 401(k) millionaires reaches record high: Fidelity

Featured Video: How do you know when you can afford to retire?

(The Hill) -- A record number of 401(k) accounts contained $1 million or more during the second quarter of 2024, according to an analysis from Fidelity Investments.

There were about 497,000 so-called 401(k) “millionaires” last quarter, a 2.5 percent increase from 485,000 during the first quarter, according to Fidelity's analysis of 24 million 401(k) accounts across 26,000 employer-sponsored plans.

The number of individual retirement account (IRA) participants carrying balances of $1 million or more also hit a record high last quarter, jumping 6 percent from the first quarter to nearly 399,000.

The average retirement saver has seen their accounts swell in the last year.

The average retirement account balance grew for the third consecutive quarter, with the average 401(k) and IRA balance up 1 percent to $127,100 and $129,200 respectively.

The average 401(k) account balance is up 13 percent from a year ago, and the average IRA account balance is up 14 percent.

“Retirement savers in the second quarter of 2024 benefited from the continued upswing of the previous quarter when contribution levels and average account balances reached record highs,” said Sharon Brovelli, president of workplace investing at Fidelity Investments.